Forum Archive Index - March 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Travis,

>
>My point is just that there is at 
>least one reference in print where Buffett has 
>explicitly denied using the famous
> "Buffett" valuation method.
>


I'd still like to see the context of that comment by Buffett. 

After all, if someone asked me:

" Do I use ROE to decide what would be a suitable company for 
investment"  my answer would be "No".   However, ROE is an essential. 
albeit only one. ingredient in the method outlined by Mary Buffett in 
Buffetology which I do use.

Yet to answer the question do I use ROE as a decision tool with "yes" 
would be misleading.  In the same way if Buffett answered the 
question did he use the methods outlined by Mary Buffett with a 
'yes', this might also be misleading as it implies that Buffett uses 
just this method and nothing else.   As we are both aware Buffett 
does far more than produce a share analysis method that compacts down 
to a simple mathematical equation.  So just because he says he 
doesn't use the method, does not mean that the method as shown by 
Mary Buffett is not an ingredient - part of a far more comprehensive 
overall approach - that Buffett does use.

SNOOPY





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